Among UK dividend stocks, Greencoat UK Wind PLC (GB:UKW)offers investors an opportunity to enhance their income portfolios with a dividend yield of 7.2%, outperforming the industry average. Greencoat UK Wind is a renewable infrastructure fund that invests in wind farms.
TipRanks provides several tools to assist users in finding dividend stocks that align with their needs. Here, we’ve used the TipRanks Top Dividend Shares designed specifically for the UK market. This tool curates an extensive list of companies with high dividend yields, along with additional factors for users to evaluate.
Let’s dive into more details.
Greencoat UK Wind’s Dividend History
Greencoat distributes its dividends, typically four times a year. In 2023, the company’s total dividend increased to 10p per share against the target dividend of 8.76p per share. This was driven by a higher dividend of 3.43p per share in the fourth quarter.
Additionally, in 2023, the company achieved a significant milestone by distributing over £1 billion in dividends since its listing. For 2024, Greencoat’s target dividend is 10p per share.
Dividend Growth Backed by Strong Cash Flows
Greencoat’s solid dividend growth is well-supported by its cash flows and prudent capital allocation. Last month, the company announced its full-year results for 2023, with a net cash generation of £406 million and a dividend cover of above 2.1 times.
For the full year, the total profit after tax decreased to £126.19 million, compared to £953.86 million a year ago. The bottom line was hit by higher interest rates and other finance expenses.
Moving forward, the company is confident about achieving its dividend target for 2024, driven by its sustained cash flow and dividend coverage.
Is Greencoat UK Wind a Buy or Sell?
According to TipRanks consensus, UKW stock has received a Moderate Buy rating, based on one Buy recommendation from RBC Capital analyst Alexander Wheeler. Post-results, Wheeler confirmed his Buy rating at a price target of 190p, which is 38% above the current trading level.
Year-to-date, the Greencoat UK share price is trading down by over 8%.
